Defendants were indicted by a federal grand jury on May 24, 2017. Defendants are charged with various counts of conspiring to traffic in contraband cigarettes, conspiring to distribute controlled substances/analogues and money laundering.

According to the indictment, defendants conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in Chicago, Illinois and New Jersey, high tax markets. Defendants used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores.

In addition, synthetic drugs, commonly referred to as K-2, was sold on a daily basis from a handful of the convenience stores. Defendants not only purchased finished product from a national distributor but manufactured synthetic drugs themselves, importing precursor chemicals from China.

“The collaboration with our federal and local law enforcement partners is the key to breaking criminal enterprises in this area,” said Special Agent in Charge James M. Gibbons of HSI Chicago. “HSI will continue to work with our law enforcement partners to seek out and dismantle criminal organizations that deal in contraband products and sell synthetic drugs in our communities.”

James P. Shroba, Special Agent in Charge of the DEA St. Louis Division stated, "These indictments and arrests reflect the commitment of the DEA and our federal, state and local law enforcement partners to dismantle these types of unprincipled business operations that are profiting from human frailty. Synthetic drugs that are sold as purportedly legal substitutes for cannabis and stimulants, such as cocaine and methamphetamine, are neither legal nor safe. These substances were never intended for human consumption and only serve to satisfy the avarice of the seller.”

If convicted, defendants are facing maximum penalties of 5 years to 20 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.